In Michigan when selling a titled vehicle, you sign the title and give it to the new owner , I believe the new owner signs it as well. That proves you sold it (of course keeping a copy of the bill of sale helps too). Then he must register it and receives a new title with his name on it. You have 3 days to do that. The only driving that can be done with a used car is coming home from the sellers or to the SOS office to get it titled again.
Now, what if he has an accident or commits a crime with it before he retitles it?.....i don't know.
racer was right tho, you SHOULD make sure they sign it right there, but as far as driving to the tag office with them, i never have.
i've had 2 buyer's that wouldn't sign my title but did sign a bill of sale, stating that it was going in brother's name, wife's name, etc,
and on those two occasions i was just happy to get paid so i let it go, everybody else signs the title in front of me, i have two bills
of sale and I keep one, (can't read half the signatures anyway) i'm always sure they get transferred on my next birthday because i'll either get or not get a registration renewal... actually I just renewed my car's and ski's recently, and my old 96 was still registered ie: titled in my name and I gave the tax office the guy's name and number, since i had it in my phone, stating that it was sold.
but it had only been 2 months maybe he was just riding out the current registration tags.
never done it myself <wink wink. but i've been told some guys just sell with an Open title, meaning it is just signed by the last seller, the guy fixes it up, and re-sells it to the next guy w/o putting it in his name. Actually its done quite often, at least 4 or 5 of my purchases have been open titles being sold by guy #2, with a title that has guy #1's signature. I think they buy them for like $200 and then do a quick flip and re-sell to guys like me for $450.